Making life economically secure and stress free after retirement is the priority of every elder. In this case, the government -run Post Office Senior Citizens Savings Scheme (SCSS) comes out as a reliable and attractive investment option.
The scheme is specially designed for people 60 years of age, with good interest and tax exemption.
Citizens of 60 years of age or older can invest in this scheme. In addition, government employees aged 55-60 who have taken VRS (voluntary retirement) and can also benefit from 50-60 years of defense employees with certain conditions. There is also the convenience of opening a joint account in the name of single or spouse.
The SCSS scheme can invest at least 1,000 rupees and a maximum of Rs 30 lakh. Earlier, the limit was Rs 15 lakh, which has now been doubled. The scheme is offering 8.2% annual interest, which is much higher than the FD of banks. This interest is given on a quarterly basis.
If a person invests Rs 30 lakh, he will get a monthly interest of Rs 2.46 lakh, or about Rs 20,000.
Under this scheme, investment gets tax exemption of up to Rs 1.5 lakh under section 80C of the Income Tax Act. That is, it not only generates regular income, but also helps in saving taxes. The duration of the SCSS is 5 years and can be extended for 3 years if needed. If an investor wants to withdraw money ahead of time, withdrawal with certain conditions is possible.
If the account is closed 1 year ago, no interest is received, when the account is closed between 1-2 years, 1.5% interest is deducted and 1% interest is deducted if the account is closed between 2-5 years. (Note: The information provided here is only for your information. It is necessary to consult the experts before making any investment.)
